Businessman denies influence-peddling in Hill contract

Giles Varin arrives for his appearance at the Government Operations Committee where the committee is to discuss Parliament Hill's renovations contracts on November 2, 2010. (CHRIS ROUSSAKIS/QMI Agency)

OTTAWA - A Quebec businessman admits that he took cash from a Montreal company implicated in a botched renovation contract on Parliament Hill but denies he lobbied top Tories to help the firm land the deal.

However, Gilles Varin did tell a Commons committee Tuesday that he provided a brochure from the LM Sauve firm to Hubert Pichet, an assistant to Conservative senator Pierre-Claude Nolin. LM Sauve was on a short list to receive government contracts and the company was eventually awarded a $9 million contract to do West Block resurfacing work.

Varin told the government operations committee that he received $118,000 in consulting fees from LM Sauve for consulting work, but that it was well before the firm landed the government contract. He says he took the money as part of a deal to help owner Paul Sauve recover from bankruptcy.

"I consulted him for several files (but) we were far from thinking about the contract related to . redoing the Parliament buildings," Varin testified. "We didn't even talk about it.

"I did nothing wrong."

The Commons committee is examining allegations of political interference in federal contracting. Members have asked the Conservative government to suspend renovation work on the Hill while the tendering process is reviewed.

Opposition parties allege several Montreal construction firms received government contracts after making $500 donations to the Conservatives at a January 2009 fundraiser attended by Public Works Minister Christian Paradis.

Paradis admits he was present at the Montreal event, organized by LM Sauve, but the minister denies discussing government business. Varin told the committee Tuesday that he met Paradis at the cocktail but that he doesn't know him well.

Varin's credibility took a hit during his testimony Tuesday when MPs confronted him with his fraud charges that he faced in the 1970s. He offered scant details.

"I don't really remember the file," he told MPs. "Anyhow, it ... had nothing to do with the government."

Opposition MPs said they were not convinced about Varin's memory lapses.

He had previously been described as a Conservative fundraiser and organizer but the party issued a statement last month saying he's not a Tory member and never did work for the party.